NOHO Inc (OTCMKTS:DRNK) Push for Double Zeroes Fails
After making an attempt to clamber out of triple zero land, NOHO Inc (OTCMKTS:DRNK) wiped out Tuesday’s progress and slumped 28% back down yesterday on massive volume of over 226 million shares traded.
It has been quite a while since DRNK shifted enough in daily share and dollar volume so as to crop up among the most heavily traded OTC stocks. The company has kept a low profile on the press release front for a while and its latest available report covers the three months ended June 2015. Speaking of the report, it came predictably late, on the same day as the Q1 report. The numbers contained in it provide very little that could cheer investors up. Here is a brief summary:
- $(73) in cash (negative cash)
- $3.3 million in current liabilities
- $159 thousand in Q2 sales
- $594 thousand in Q2 net loss
It’s always a quaint little surprise to see a pink sheet company that has recorded negative cash reserves on its balance sheet. In addition to this quirk, DRNK has a net loss of nearly $1 million for the first six months of 2015.
The Subsequent events chapter of the report casually mentions that DRNK pumped out an extra 128 million new shares to clear convertible debt. No information is given on the amount of debt cleared or the conversion price.
With 516 million outstanding shares reported as of June 30, this brings the current DRNK OS count to at least 644 million. Back in December 2014, less than a year ago, there were a mere 26 million outstanding shares. You don’t need to have studied calculus to gauge just how horrible the percentile dilution from 26 to 644 million is.
DRNK‘s next quarterly is due in less than a month. Hopefully, it will arrive on time for a change.
